Live Blog: ECB Rate Decision

European Central Bank President Mario Draghi Thursday praised the Greek government in pushing another controversial package of reforms through parliament, but gave veiled warnings that more is needed to keep the country on track and said the ECB can’t do that task on its own.

Mr. Draghi praised the Greek government for its success in pushing through parliament another €13.5 billion in spending cuts, tax increases and other reforms to liberalize the economy in a late-night session Wednesday,

However, he stressed the limits of what the ECB could do for Greece, saying it couldn’t create money just to keep afloat a government that is set to run out of it within weeks, unless the creditors agree to release another slice of aid to the country.

“We cannot do monetary financing,” Mr. Draghi said, although he repeated that the ECB would pass on all to euro-zone governments all the profits its makes on over nearly €40 billion of Greek bonds that it still holds.

He also omitted from his opening statement a formulation that had figured prominently in recent press conferences, namely that “the euro is irreversible.”

Live Blog: ECB Rate Decision

By Geoffrey Smith

European Central Bank President Mario Draghi Thursday praised the Greek government in pushing another controversial package of reforms through parliament, but gave veiled warnings that more is needed to keep the country on track and said the ECB can’t do that task on its own.

Mr. Draghi praised the Greek government for its success in pushing through parliament another €13.5 billion in spending cuts, tax increases and other reforms to liberalize the economy in a late-night session Wednesday,

However, he stressed the limits of what the ECB could do for Greece, saying it couldn’t create money just to keep afloat a government that is set to run out of it within weeks, unless the creditors agree to release another slice of aid to the country.

“We cannot do monetary financing,” Mr. Draghi said, although he repeated that the ECB would pass on all to euro-zone governments all the profits its makes on over nearly €40 billion of Greek bonds that it still holds.

He also omitted from his opening statement a formulation that had figured prominently in recent press conferences, namely that “the euro is irreversible.”